1. (a) The department may institute a judicial action or proceeding against a housing sponsor receiving a loan or owning a housing development under this chapter to:

   1. (1) enforce this chapter;
   2. (2) enforce the terms and provisions of an agreement or contract between the department and the recipient of a loan under this chapter, including provisions regarding rental or carrying charges and income limits as applied to tenants or occupants;
   3. (3) foreclose its mortgage; or

   4. (4) protect:

      1. (A) the public interest;
      2. (B) individuals and families of low and very low income or families of moderate income;
      3. (C) stockholders; or
      4. (D) creditors of the sponsor.
2. (b) In an action or proceeding under this section, the department may apply for the appointment of a trustee or receiver to assume the management and operation of the affairs of a housing sponsor.
3. (c) The department, through its designated agent, may accept appointment as trustee or receiver of a housing sponsor when appointed by a court of competent jurisdiction.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.